‘Near-Instant Finality’: Are Stablecoins Ready To Fix Settlement Inefficiencies?
Stablecoins are emerging as transformative tools in global financial systems, offering faster settlements and reduced costs. However, before widespread adoption, the technology faces regulatory, infrastructure, and institutional challenges. That was the consensus among speakers at the Benzinga Future of Digital Assets conference, where panelists examined the factors shaping stablecoin adoption and tokenized assets.
Efficiency In Payments And Settlements
Colin Butler, global head of institutional capital at Polygon Labs, highlighted how stablecoins could reshape traditional payment systems by reducing settlement delays. “What if you could rewire the global settlement system on yield-bearing institutional stablecoins and use them as settlement tokens?” Butler said. He explained that these tools could generate returns during settlement periods, addressing inefficiencies inherent in traditional systems.
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Butler referenced BlackRock’s move to tokenize its money market fund across five blockchains as a sign of growing institutional interest. “These products are being built right now,” he added, predicting wider integration of tokenized solutions into existing financial systems.
Andrew Czupek, Northern Trust’s …
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